Oklahoma State Tax Additions

Oklahoma State Tax Additions

Oklahoma state tax returns may require additional forms or schedules depending on your residency status, income sources, and specific tax situations. These additions help ensure accurate reporting of income and tax liability for nonresidents, part-year residents, and those with specific types of income such as capital gains or business income.

Common Additions for Nonresidents and Part-Year Residents

• Form 511-NR: Required for nonresidents and part-year residents. This form calculates Oklahoma income tax based on income earned within the state. You must report income from Oklahoma sources and prorate your tax liability using your adjusted gross income (AGI) from Oklahoma sources divided by total AGI.
• Line 13: Oklahoma Taxable Income. This is the amount remaining after subtracting allowable deductions and exemptions from your income.
• Line 14a: Oklahoma Income Tax. This is the tax amount determined by looking up the taxable income from Line 13 in the Oklahoma tax tables.
• Proration Method: The Oklahoma income tax is determined by prorating the federal tax base using the ratio of Oklahoma AGI to total AGI. This ensures only the portion of income earned in Oklahoma is taxed.

Capital Gains and Business Income Additions

• Form 561-NR: Used by nonresidents to report capital gains. You must enter net capital gain from federal Schedule D and provide supporting documents like Form 8949 or Form 4797.
• Form 561: For residents reporting capital gains. Must be completed if capital gain information is included in the federal return. Requires documentation such as Form 4797 or Schedule K-1.
• Form 511-TX: Used to claim a credit for taxes paid to another state. Available if you paid income taxes to a different state during the year.

How to Add Forms Using Online Software

• Form 511-NR: Access via the state section in your tax software. Select “Start or Revisit Oklahoma State,” then navigate to the residential information section and choose “Nonresident” or “Part-Year Resident.”
• Form 561-NR: After entering federal capital gain details, go to the state return, confirm residency status, and select “Subtractions” to find Form 561-NR.
• Form 511-TX: In the credits section, answer “yes” to “Did you pay income taxes to any additional states?” to access Schedule 511-TX.

What Constitutes Oklahoma Source Income?

For nonresidents, Oklahoma source income includes:

• Salaries, wages, and commissions for work performed in Oklahoma.
• Income from unincorporated businesses or professions conducted in Oklahoma.
• Distributive share of partnership, estate, or trust income attributable to Oklahoma activities.

Source:

Form 511-NR - Part-Year Resident and Nonresident Income Tax Return

Form 561-NR - Capital Gains for Nonresidents

Form 561 - Capital Gains for Residents

Schedule 511-TX - Credit for Tax Paid to Another State

Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions before filing.